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justrading
Registered: Apr 2011
Posts: 840 |
10-12-12 10:11 PM
Quote from shortbleu:
Hi Justrading,
After some google searches, it seems Ninjatrader allows spot fx also (not just currency futures).
However in the link you sent:
http://www.ninjatrader.com/support/...ead.php?t=48790
I understand the NT user wanted to plot 5 futures in the same chart and the NT representative said it could be done but on 3 different scales, ie not on the same scale.
I need to be sure a graph overlay can be done on the same scale (in the same way as in the CMC Markets screen I sent earlier). Can someone tell if it's possible? Because there's not point for me to re-download NT, subscribe for a free feed and spend many hours to re-install the whole thing if at the end of the day it can't be done.
I am not lazy but before I ask the NT guys to resend me my password, do the software install etc, I need to be sure the overlay can be done.
If no NT user here responds I suggest you sign up to the forum per the link and post your question. Their tech support crew is second to none in terms of responsiveness.
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shortbleu
Registered: May 2009
Posts: 202 |
10-13-12 02:17 AM
I read several posts where people had issues with graph scales when plotting 2 instruments on the same graph.
From looking at their graph (with wrong scales) they went long the weaker and short the stronger (which is the correct thing to do) and expected a reversion to the mean, and when the two instruments did converge and both lines touched each other (as they were expecting), they were making a loss !!! whereas it should have been a profit. They explained the loss was due to incorrect scales on their graph, ie when the graph was showing a divergence, there was not one and when the graph was showing a reversion to the mean there was not one, as all this was pure illusion due to incorrect scales on their graphs.
I thought the netdania graph could cause me the same issue as the scales are different for eur usd and gbp usd. However, when I look into further details and make the calculations based on potential trades that could have been made based on divergence and expecting mean reversion, I did not find a single occurence where I could lose money when both line get closer to each other.
See attached netdania graph:
Scenario 1: very favourable:
On 15 Jan, open positions:
buy gbp usd at 1.5328 and sell eur usd at 1.2664
On 26 Apr, close positions:
sell gbp usd at 1.6255 and buy eur usd at 1.3250
gbp usd profit is 927 pips, and eur usd loss is -586 pips, total profit: 341 pips
Scenario 2: less favourable:
On 20 May, open positions:
sell gbp usd at 1.5828 and buy eur usd at 1.2810
On 04 Jun, close positions:
buy gbp usd at 1.5402 and sell eur usd at 1.2460
gbp usd profit is 426 pips, and eur usd loss is -350 pips, total profit: 76 pips
I made a couple of other scenarios and calculations and each time the graph was showing a reversion to the mean, my calculation was a profit and never a loss, therefore it seems the scales of the graph are not too wrong or maybe even not wrong at all. What is your view on this? For me the graph does not give false signals, ie what looks like a profit on the graph is a genuine profit when I make the actual profit calculation.
For some people their graph was showing a profit but they ended up with a loss saying the graph scales were wrong.
Can someone confirm the attached netdania graph is valid for trading purposes even though the scales look weird?
Can you find an example where reversion to the mean as shown on the graph would result in a loss?
Thanks
 netdania calcs.gif
This has been downloaded 54 time(s).
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justrading
Registered: Apr 2011
Posts: 840 |
10-13-12 10:04 AM
Quote from shortbleu:
I read several posts where people had issues with graph scales when plotting 2 instruments on the same graph.
From looking at their graph (with wrong scales) they went long the weaker and short the stronger (which is the correct thing to do) and expected a reversion to the mean, and when the two instruments did converge and both lines touched each other (as they were expecting), they were making a loss !!! whereas it should have been a profit. They explained the loss was due to incorrect scales on their graph, ie when the graph was showing a divergence, there was not one and when the graph was showing a reversion to the mean there was not one, as all this was pure illusion due to incorrect scales on their graphs.
I thought the netdania graph could cause me the same issue as the scales are different for eur usd and gbp usd. However, when I look into further details and make the calculations based on potential trades that could have been made based on divergence and expecting mean reversion, I did not find a single occurence where I could lose money when both line get closer to each other.
See attached netdania graph:
Scenario 1: very favourable:
On 15 Jan, open positions:
buy gbp usd at 1.5328 and sell eur usd at 1.2664
On 26 Apr, close positions:
sell gbp usd at 1.6255 and buy eur usd at 1.3250
gbp usd profit is 927 pips, and eur usd loss is -586 pips, total profit: 341 pips
Scenario 2: less favourable:
On 20 May, open positions:
sell gbp usd at 1.5828 and buy eur usd at 1.2810
On 04 Jun, close positions:
buy gbp usd at 1.5402 and sell eur usd at 1.2460
gbp usd profit is 426 pips, and eur usd loss is -350 pips, total profit: 76 pips
I made a couple of other scenarios and calculations and each time the graph was showing a reversion to the mean, my calculation was a profit and never a loss, therefore it seems the scales of the graph are not too wrong or maybe even not wrong at all. What is your view on this? For me the graph does not give false signals, ie what looks like a profit on the graph is a genuine profit when I make the actual profit calculation.
For some people their graph was showing a profit but they ended up with a loss saying the graph scales were wrong.
Can someone confirm the attached netdania graph is valid for trading purposes even though the scales look weird?
Can you find an example where reversion to the mean as shown on the graph would result in a loss?
Thanks
I will leave the specific answer to someone who actually trades pairs, preferably forex.
A simple observation to give you food for thought. Charting platforms typically automatically adjust the scale when you get a wide range day (to fit the day into a screen) and when the plot approaches either extreme, unless you set it to fix the scale.
In the case of a pairs plot, if it adjusts 1 scale and not the other, or 1 scale more than the other, your visual assessment would be wrong and you would be unaware. You could face this problem using a paid platform of your choice, unless you take steps to fix the scales, or plot the ratio as Sierra Charts allows.
I suggest you watch netdania for a few days at least and see how they adjust scales before concluding it is ok to use the charts.
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Xspurt
Registered: Jun 2009
Posts: 1781 |
10-13-12 10:55 AM
Is this what you are looking for? This is ProRealTime.com and the EoD is free.
I have overlaid the spot Eur/Usd and Gbp/Usd. You can have the chart display in what ever format you want - I have mixed Bars and Candles here...
 spot overlay.png
This has been downloaded 74 time(s).
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